untitled design

Chinese central bank maintains interest for 1-year credit lines at 2.75%

The People’s Bank of China (PBoC) left its key interest rates unchanged on Tuesday, suggesting it may maintain benchmark lending rates despite further signs of weakness in the world’s second-largest economy. world.

The PBoC injected 850 billion yuan ($120.16 billion) of liquidity through the one-year medium-term credit facility at an interest rate of 2.75%. It also injected 172 billion yuan of funds through its seven-day reverse repurchase agreement at an interest rate of 2.0%.

The move to hold key rates could mean China’s benchmark benchmark interest rate will remain unchanged next week as the Loan Prime Rate (LPR) is priced based on MLF interest rates.

The PBOC also said it had injected 320 billion yuan of medium- and long-term liquidity so far this month through pledged supplemental loans, as well as a technology and renovation loan program.

Some economists had expected a cut in banks’ reserve requirement ratio as there are 1 trillion yuan of MLF loans maturing this month, according to data provider Wind.

Source: CNN Brasil

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular